1. Souksamone SENGCHANH Souphanouvong University November, 2016
The Status of Trade between Lao PDR and Korea: Past, Present and Future
Souksamone SENGCHANH
Souphanouvong University
November, 2016

2. Overview
Laos and R. Korea have traded for more than 40 years. An average import value of Laos from R. Korea between 1970 and was only USD 200,000 annually, while an average export from Laos achieved only USD 43,000 per annual. However, by mid- 1990s, trade value had substantially increased at the average of USD 9 million annually

3. Bilateral Trade Overview
Lao PDR actively pursue an open trade administration and the trade policy regime has been reformed to enhance transparency and secure and enabling trade environment. At the same time, the Gol has been expanded its trade relations with countries and around the world. To date, Laos has been broaden trade relations with more than 50 countries, in which a main trading partner are Thailand, Vietnam, Australia, Korea, Malaysia, England, France, Germany, Japan, and the United states of America. It has concluded and singed trade-related agreements with 18 countries included Korea DPR.

5. Market Access for Lao PDR
Lao PDR has market access opportunities under unilateral and reciprocal preferences from 47 developed and developing countries. Lao PDR also obtains preferential tariff treatments from R. Korea

8. All Approved Investment Projects with R. Korea Period 1989 – 2015
No.
Country
Unit
Value of Investment (US$) 1
Lao
2561
6,252,316,159 2
Korea, South
291
751,072,139
Total
6015
24,476,953,967

9. S. Korea is Laos’ Fourth-largest trading partner after Thailand, China and Japan
S. Korea is increasingly becoming a key trading partner in technology and electronic products. Example, Vehicles and mobile phones

10. Table 1. Laos – R. Korea trade value (in USD)
Year
Import %
Export
Total value
Trade balance
2005
13,930,000 -
2,110,000
16,042,005
-11,820,000
2006
23,328,000
67%
17,760,000
742%
41,090,006
156%
-5,568,000
2007
55,653,000
139%
70,335,000
296%
125,990,007
207%
14,682,000
2008
53,187,000
-4%
52,965,000
-25%
106,154,008
-16%
-222,000
2009
55,760,000 5%
19,529,000
-63%
75,291,009
-29%
-36,231,000
2010
112,296,000
101%
19,992,000 2%
132,290,010
76%
-92,304,000
2011
154,462,000
38%
396,256,500
1882%
380,810,300
188%
241,794,500

11. Table 1. Laos – R. Korea trade value (in USD)

12. Export and Import trends

13. Increased exporting products (in USD)
HS Code
Description
2008
2009
2010
‘440290
Wood charcoal, incl. shell or nut charcoal, whether or nor agglomerate
164,000
358,000
662,000
‘440929
Wood, incl. strips and friezes for parquet flooring, not assembled, co
607,000
494,000
650,000
‘441900
Tableware and kitchenware, of wood
88,000
87,000
94,000
‘610510
Men’s/boys shirts, of cotton, knitted
21,000
24,000
73,000
‘220300
Beer made from malt
2,000
12,000
‘440710
Lumber, coniferous (softwood) 6 mm and thicker
6,000
36,000
58,000

14. Decreased exporting products (in USD)
HS Code
Description
2008
2009
2010
‘260300
Copper ores and concentrates
20,179,000
15,060
17,182,000
‘440799
Lumber, non-coniferous nes
88,000
109,000
86,000
‘440729
Lumber, tropical hardwood nes, sawn lengthwise >6mm
106,000
143,000
70,000
‘740311
Copper Cathodes and sections of cathodes unwrought
29,951,000
636,000
‘830590
Letter corners, letter or paper clips & similar office art of base metals
363,000
207,000
‘240220
Cigarettes containing tobacco
277,000
‘’080232
Walnuts, fresh or dried, shelled or peeled
752,000

15. New exporting products (in USD)
HS Code
Description
2008
2009
2010
‘260900
Tin ores and concentrates
597,000
‘830510
Fitting for loose-leaf binders or files of base metal
136,000
‘620463
Women’s/girls trousers and shorts, of synthetic, not knitted
95,000
620520
Men’s/boys shirts, of cotton, not knitted
82.000
‘440320
Logs, poles, coniferous nes
54,000
‘090121
Coffee, roasted, not decaffeinated
34,000
‘440210
Bamboo charcoal, incl. shell or nut charcoal, whether or not agglomerate
10,000
24,000
‘090111
Coffee, not roasted, not decaffeinated
18,000
‘610442
Women’s/girls dresses, of cotton, knitted
11,000

16. Increased importing products (in USD)
HS Code
Description
2008
2009
2010
‘8703
Cars (ind. Station wagon)
15,095,000
20,522,000
32,914,000
‘8702
Public-transport type passenger motor vehicles
3,071,000
3,302,000
27,673,000
‘8704
Trucks, motor vehicles for the transport of goods
19,713,000
17,518,000
21,761,000
‘8708
Parts & access of motor vehicles
3,117,000
4,665,000
6,978,000
‘8544
Insulated wire/cable
10,000
2,444,000
‘8507
Electric accumulator
760,000
102,000
1,857,000
‘3002
Human & animal blood; antisera, vaccines, toxins, micro-orgaism cultu
56,000
50,000
1,753,000
‘7308
Structures (rods, angle, plates) of iron & steel nes
796,000
297,000
1,558,000
‘8471
Automatic data processing machines; optical reader, etc.
395,000
117,000
1,038,000
‘’9018
Electro-medical apparatus (electro-cardiographs, infra-red ray app, sy
16,000
46,000
898,000
‘8517
Electric app for line telephony, incl curr line system
1,000
9,000
498,000
‘8543
Electrical match & app having individual function, nes
3,000
14,000
375,000
‘2710
Petroleum oils, not crude
26,000
69,000
310,000
‘8432
Agricultural, hortic, forest machinery for soil prep/cultivation
8,000
301,000

17. Decreased importing products (in USD)
HS Code
Description
2008
2009
2010
‘4100
New pneumatic tires, of rubber
1,137,000
587,000
588,000
‘2402
Cigars, cheroots, cigarillos & cigarettes
440,000
312,000
‘3004
Medicament mixtures (not 3002, 3005, 3006), put in dosage
1,576,000
69,000
148,000
‘3925
Builders’ ware of plastics, nes
314,000
1,000
80,000
‘9405
Lamps & lighting fittings nes; signs, nameplates illuminated
316,000
126,000
51,000
‘7326
Articles of iron or steel nes
203,000
651,000
42,000
‘6808
Panel, board etc of veg fibre, straw etc, agglomerated with cement, etc
263,000
3,000
41,000
7610
Aluminum structure nes & part of structures
261,000
38,000
‘7007
Safety glass, consisting of toughened or laminated glass
527,000
28,000
‘8207
Interchangeable tl for hand tol, or for machine-tools
102,000
14,000
9,000
‘8504
Electric transformer, static converter (e.g, rectifiers)
334,000
2,078,000
6,000
‘9403
Other furniture and parts thereof
4,000
2,000

18. New importing products (in USD)
HS Code
Description
2008
2009
2010
‘8426
Derricks; cranes; straddle carriers & works tructs fitted with a crane
2,832,000
‘8705
Specl purp motor vehicles (fire fight veh, crane lorry)
150,000
951,000
‘3902
Polymers of propylene or of other olefins, in primary forms
454,000
‘9022
Apparatus based on the use of X-ray/of alpha, beta/gamma radiations
2,000
445,000
‘6310
Rags, Scrap twine, cordage, rope
155,000
347,000
‘8716
Trailers & semi-trailers; other vehicles not mechanically propelled
22,000
276,000
‘3904
Polymers of vinyl choride/other halogenated olefins, in primary forms
208,000
‘9406
Prefabricated buildings
183,000
‘7215
Bars & rods of iron or non-alloy steel nes
‘8430
Moving/grading/scraping/boring machinery for earth
176,000
‘7304
Tubes, pipes and hollow profiles, seamless or iron or steel
171,000
‘8537
Board & panels, equipped with two/more switches, fuses
154,000

19. Current Situation of Korean Business in Laos
Banking sector
Tourism related sector

20. Challenges of Laos
Laos benefits on ASEAN-Korea Free Trade Agreement (AKFTA), but Laos still Less Export to Korea

21. Opportunity of Laos
Laos could encourage more Korean businesses to invest in Laos and Export to Korean market.
The eight documents signed prove momentum to accelerate economic cooperation between Laos and Korea such as economic and trade, education, agriculture, health, human resource development, and culture.

22. Future of Laos market Export goods to other countries, but not Korea
How we can benefit from Korean market?